If US national income declined while it remained stable in Japan, then US trade deficit with Japan will most likely: O increase O not change O decrease

Q: A finding that _______________would provide evidence AGAINST the semi-strong form of the EMT. Group…

A: The Efficient Market Theory (EMT) is a hypothesis that states that stock prices reflect all…

Q: Inn Corporation had 30,000 ordinary shares of which were acquired during Year 2 for a total…

A: Answer -   December 31, Year 2 ledger balance (30,000 x P65)                  P1,950,000 Cost…

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A: Potential investments and chosen based on their benefits and costs. The investment option which…

Q: D4) Of the following 4 firms, which one should have the highest dividend payout ratio? Group of…

A: The entity pays out higher dividend when the entity has no alternative investment option which can…

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Q: Exchange rate fluctuations can be used as a tool of speculation by speculators. Make an example of…

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Q: John save Php 120 every quarter for 3 years earning 7% compounded monthly in a fund. How much will…

A: (1+i) = (1+i(12)/12)^12 (1+i) = (1+0.07/12)^12 (1+i) = 1.07229 i = 0.07229 = 7.23%

Q: A stock you are interested in is priced at $105, it's recent dividend was $5, if the market expects…

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Q: On the average, the announcement of a decrease in dividends can be interpreted by investors as bad…

A: A financial manager has to take three types of decisions for the company. They are investing…

Q: Tracy Lee, a Capital Expenditure Manager for Ho-Mei Food Manufacturing, knows that her company is…

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Q: $100,000 State of Massachsetts bond, 3.5% coupon (paid annually), due 5/11/2032 is quoted at a yield…

A: Bonds pay the annual interest rate on the bonds and annual income would be coupon payment on bond.

Q: Addison Corp. is considering the purchase of a new piece of equipment. The equipment will have an…

A: Cash flows are the cash generated from the operation of the business organisation. In other words,…

Q: A. Explain two purposes of WACC in capital budgeting. B. H&H Manufacturing Company is considering…

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Q: You are considering an investment in either individual stocks or a portfolio of stocks. The two…

A: Average return on a stock over a given number of years is the mean of yearly returns. That is,…

Q: hy is it important to understand financial statem

A: Financial statement are representation of the performance of company and are show how is company…

Q: Use the information below provided by Angel Baby Angel Company: Sales     8,250,000.00 Operating…

A: EVA is the economic value added which is calculated using the following formula.

Q: Zero coupon bond yields and oil forward prices for the next three years are: Year 3 Oil Forward…

A: Zero coupon yield for year 1 (r1) = 5% r2 = 6% r3 = 7% Forward price in year 1 (P1) = 60 P2 = 62 P3…

Q: a P5,000,000 loan to be credited to ABC on May 1, 2022. The prevailing interest rate on Jan. 31 was…

A: Forward rate agreements(FRA) are interest rate derivatives. This is an instrument used by…

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Q: ould it sell for in order to yield a 7.5% nominal return on the investment? O $522,150 O $542,487…

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Q: Allan Corporation would like to purchase 60% of Mark Corporation in an acquisition. If Allan pushes…

A: Investment decisions are one of the major decisions of financial management. This investment…

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A: Net Present Value is the difference between present value of cash inflows and cash outflows.…

Q: The functional currency is Currency in which the entity reports earnings.   The currency in…

A: Functional currency refers to the currency in which the entity has primary economic environment.

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A: 3*9 FRA means the entity needs money in the coming 3 months or after 3 months for 6 months. We…

Q: Elaborate about The duty to not misrepresent.

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A: Variance refers to the deviation from the standards, and it implies the range to within which the…

Q: Juan owes $10,000 to a friend who is charging him simple interest of 3.50% p.a. He is required to…

A: Loan amount = $10,000 Simple interest rate = 0.035 Loan period = 4 months Lets assume equal payment…

Q: You use a broker to increase your available capital for investing into the shares of Globe Plc from…

A: Maintenance margin is the minimum amount which the investor must maintain in its account. Margin…

Q: Which of the following are false? I) Managers are reluctant to make dividend changes that might have…

A: As per Lintner’s stylized facts, Managers are reluctant to make the dividend changes that might have…

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A: When balance sheet doesn't balance at the first, it means there is some error or mistake which need…

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A: A forward contract involves commitment to buy or to sell a certain commodity at a pre-determined or…

Q: Discuss different financing alternatives based on the processing industry and market using Private…

A: The US Small Business Administration defines it as “financial support from external sources other…

Q: 24. LANY Corporation is deciding whether to pursue a restricted or relaxed working capital…

A: Given, Meaning of working capital investment, Its the deployment of the resources which are…

Q: If you short-sell a stock and it pays a dividend while your short sale is open, then O A. You are…

A: Solution:- Short selling means selling a stock in the market by borrowing it from someone else.

Q: For example, you are a portfolio manager, and you get to select your pick of clients (individual or…

A: As a portfolio manager, the pick would be individual investor and sub class would be HNWIs. HNWIs or…

Q: Suppose you require a 10% return on your investments while purchasing a s y trading at $50. The…

A: Return on investment, as the name indicates, is the return or the profit that accrues to you from…

Q: 1. The Dow Jones Industrial Average (DJIA30) and the Standard & Poor's Industrial Index (S&P500)…

A: The Dow Jones Industrial Average (DJIA), often known as the Dow 30, is a stock market index that…

Q: Bry borrowed a certain amount from ABC lending corp. In their contract, Kem must pay PHP 150,000 in…

A: Payment amount after 3 years = PHP 150,000 Simple interest rate = 0.075 Period = 3 Years Loan amount…

Q: Determine whether this investment is an attractive option for the company.

A: Net present value (NPV) of an alternative/project refers to the variance between the initial…

Q: You find a bond with 27 years until maturity that has a coupon rate of 9.0 percent and a yield to…

A: Given, The face value of bond is $1000 Coupon rate is 9% term is 27 years

Q: 2. What happens to domestic investment as the real interest rate rises? Explain your answer

A: The Federal Reserve (the Fed) has three goals: maximizing employment, maintaining price stability,…

Q: Cambria Bank is holding $9 million in reserves, $12 million in government bonds and $10 million in…

A: Given:Reserves= $9 million Government bonds= $12 million Mortgage Loans= $10 million Deposits= $30…

Q: Red See Industries is expected to pay a cash dividend of $2.31 per share next year (D1) The company…

A: Cash dividend is the one type of dividends that can be provided by the company to its shareholders.…

Q: 1. What are the techniques used in evaluating investments? List them and explain

A: Capital budgeting is a process used by the companies to use its limited resources to get the best…

Exchange Rate Risk

It is the possibility that the value of a currency will fluctuate in the future. In the wake of globalization, business establishments have increasingly ventured into international markets. The volume of international trade has prospered excellently in the near past and is expected to be more affluent in the future. The use of exchange-traded derivative financial instruments has been multi-folded to provide for the requirements of various MNCs and offshore potential investors. Most banks and financial institutions have helped integrate the global economies. Our Government has introduced some bold and extreme measures to fulfil the purpose behind the fiscal, industrial, and monetary policies. The enactment of GST is a huge step towards streamlining the taxation system of the country. Owing to Covid-19, this aspect of corporate risk management has become critical.